portable pc study, google/compete/otx, u.s., oct 2010netbook shoppers also evaluate laptops and...

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Portable PC StudyGoogle/Compete/OTX

How Consumers Shop for Laptops, Netbooks, eReaders and Tablets

U.S., Oct 2010

Google Confidential and Proprietary

Objectives

Understand

the consumer

buying process for

laptops, netbooks,

tablets and

eReaders.


Methodology

Google/OTX Portable PC Shopper Study

• Google commissioned Ipsos OTX MediaCT, an independent market research

company, to conduct research to better understand consumers‘ research and shopping

behavior with regard to electronics and technology products.

• To address these objectives, OTX conducted an online Attitude & Usage survey among

consumers of technology products.

• All qualified respondents were US residents age 18+, have either full or joint decision

making power for electronic purchases and intend to purchase at least one of the

following in the next 6 months:

• Laptop

• Netbook

• eReader

• Tablet

• Each respondent was assigned into one of the product categories they qualified for and

answered a subset of questions specific to their assigned device.

• Interviews were conducted from July 29th - August 10th, 2010 yielding a total sample of

3849 respondents (evenly distributed by device).


MethodologyGoogle/Compete Portable PC Shopper Study

• Compete analyzed clickstream data from its community of 2 million US internet users

• Compete identified all sessions on selected industry sites from July 2009 through July 2010 in which consumers shopped for a Portable PC (Laptops, Netbooks, Tablets, eReaders)

• Compete then analyzed the clickstream behavior of each research session to understand the following:

– What products are consumers researching and deciding among?

– Where do consumers research before they make a purchase?

– What does the research and searching process look like?

– What are the demographics of consumers researching these product categories?

• Numbers and statistics provided by Compete may not match typical local web analytics numbers

– Traditional web analytics are based on cookies and can therefore result in double counting

• Sites used in the analysis, such as manufacturers included in each category, can be found in the appendix

• Search referred visits include those visits referred from: AOL, Ask, Bing, Google, Live, Yahoo

What is the Impact ofNew Devices?


iPad erodes eReader sales

iPad erodes eReader sales

It‘s a multi-PC world

Will Tablets replace Laptops?

What is the portable

PC of choice?

Who will

buy Netbooks?

iPad challenges

Kindle

iPad challenges

Kindle



Netbooks

Notebooks

Is price the deciding factor?

…where doconsumers stand?

With so many new technologies…

Netbooks or Notebooks?


0

200

400

600

800

1,000

1,200

Jan-07 Apr-07 Jul-07 Oct-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

Laptop Netbook eReader Tablet

New Devices Have Fueled Interest in the Overall PC Category

Category Query Growth (indexed)

39% Growth YoY

43%

6%

17%

33%

Source: Google Internal Data, January 2007 through September 2010 (includes top 500 brand and generic terms per device)


There’s a New Kid in Town

YoY Growth in Unique Visitors to Each Category

-9% Laptop

114%eReader

-50% Netbook

1,328%Tablet PC

Source: Google/Compete Portable PC Study, October 2010YoY Growth based on July ‗10


With New Products Comes Uncertainty

There is an opportunity to influence which devices consumers purchase, as a big portion of the market starts out undecided

did not know exactly which type

of device they would purchase

49%

Source: Google/OTX Portable PC Shopper Study, October 2010Q. Which of the following devices are you considering purchasing?


Some Shoppers Are More Certain Than Others

Cross-shop behavior suggests that consumers view eReaders as having a distinct function, while there is uncertainty around netbooks

66%of netbook

shoppers consider another device

29%of tablet shoppers consider another

device

20%of laptop shoppers consider another

device

12%of eReader

shoppers consider another device

Source: Google/Compete Portable PC Shopper Study, October 2010 % of product shoppers who also research other devices, same month overlap Jul ‗10


iPad Defined the Tablet Category for Consumers

iPad announcement caused a declinein tablet shoppers considering other devices


Causing a Decline in Consideration of Other Devices

Dec 2009

54%

Jan 2010

19%

Tablet shoppers considering other devices

Source: Google/Compete Portable PC Shopper Study, October 2010 % of tablet shoppers who also research other devices, same month overlap, Dec ‗09 vs. Jan ‗10


Laptop Shoppers Were Intrigued by the iPad

% of Laptop shoppers considering Tablets

Cross shop for tablets peaked following iPad‘s release…

Source: Google/Compete Portable PC Shopper Study, October 2010 % of laptop shoppers who also research tablets, same month overlap, Nov ‗09 vs. Jul ‗10


But Their Curiosity Around Tablets Has Since Subsided

…but hassince declined

% of Laptop shoppers considering Tablets

Source: Google/Compete Portable PC Shopper Study, October 2010 % of laptop shoppers who also research tablets, same month overlap, Nov ‗09 vs. Jul ‗10


Netbook Shoppers Also Evaluate Laptops and Tablets

63%13%

% of Netbook shoppers cross-shopping Laptops and Tablets

Source: Google/Compete Portable PC Shopper Study, October 2010 % of netbook shoppers who also research laptops and tablets, same month overlap, July ‗10


But Seem to Prefer Function Over Form

Netbook Shoppers are 5x more likely to

consider a laptop than a tablet

Source: Google/Compete Portable PC Shopper Study, October 2010 % of netbook shoppers who also research laptops and tablets, same month overlap, July ‗10


eReader Shoppers are Decided

Despite similarities between tablets and eReaders, cross shop was only 13% at its peak.

Source: Google/Compete Portable PC Shopper Study, October 2010 % of eReader shoppers who also research netbooks, laptops and tablets, same month overlap, April ‗10


Key Takeaways

• New devices have fueled overall interest in the PC category

• Half the market is considering more than one type of device

• Devices are seen as distinct and serve unique purposes, and are contributing to an emerging ―multi-PC‖ lifestyle

How Do Portable PC Buyers Shop?


Shoppers Spend 1 Month Researching on Average

33%

43%

0 0.2 0.4 0.6 0.8 1 1.2

22%Within a week

69%Within a month

Source: Google/OTX Portable PC Shopper Study, October 2010Q. Approximately how long prior to your <device> will you start looking for information about it, if at all? (Select one).


Internet

85%

The Internet is the Preferred Source for Information

Word of Mouth

55%

In-StoreDisplays

52%TV

28%

Newspapers

19%

of shoppers will use the internet to research their purchase

Sales Associates

36%

Source: Google/OTX Portable PC Shopper Study, October 2010 Q: Based on your past experience shopping for electronics, which of the following sources of information do you plan to use when shopping for a <device>? (Select all that apply).Q: Which source do you anticipate turning to first when shopping for a <device>? (Select one).


Online Influences Over 2/3 of Device Purchases

Purchase Process

Online influenced

Source: Traqline Q3 2010


65% Store or retailer sites

61% Search engine sites

53% Brand or manufacturer sites

49% Review sites

44% Price comparison sites

18% Social networking sitesOnline Sources of Information

Source: Google/OTX Portable PC Shopper Study, October 2010Q. Which of the following online sources do you plan to use when shopping for a <device>?

Retailer Sites and Search are Most Frequented Among Online Sources


Search Drives Qualified LeadsSearch drove most number of visits to product detail pages across all product categories

24%

24%

31%

12%

Source: Google/Compete Portable PC Shopper Study, October 2010, share of EOI Driven Referrals from Search, July 2010


Portable PC Shoppers Are Heavy Searchers

1Portable PC buyers do an average of searches during their shopping process4

Source: Google/Compete Portable PC Shopper Study, October 2010Average number of searches conducted by portable PC shoppers who added a product to cart


Over Half of Shoppers Perform More Than 5 Searches

10+ 5 – 9 3 – 4 2 1

Number of Queries

58% of shoppers perform more than 5 searches

Source: Google/Compete Portable PC Shopper Study, October 2010


As Queries Increase, So Do Conversion Rates

17%

1

2

3–4

5–9

10+

14%

16%18%

22%

Conversion Rates* by Number of Search Queries

Shoppers who conducted 10+ search queries converted at a rate of 22%

Source: Google/Compete Portable PC Shopper Study, October 2010Conversion rates by number of search queries (Portable PC Shoppers, July ‘09 through July ‗10)


Heavy Searchers Used Both Brand & Non-Brand

The more a consumer searched, the more they utilized both branded and non-branded terms

Branded Versus Non-Branded Search, by Number of Queries

Num

be

r o

f Q

ue

rie

s

10+

5–9

3–4

2

1

Branded Only Non-Branded Only Both

18% 82%

43% 1% 56%

33%

18%

22%

62%

75%

78%

5%

8%

Source: Compete Portable PC Shopper Study, October 2010Branded versus non-branded search, by number of queries (Laptop Shoppers; July ‗09 through July ‘10)


Shoppers Who Used Both Terms Converted at the Highest Rate

Share of Converters by Query Term Type Used & Conversion Rate

Source: Compete Portable PC Shopper Study, October 2010Share of converters by query term type used and conversion rate (Laptop Shoppers July ‗09 through July ‗10)

Convers

ion R

ate

Convert

er

Share


Recommendations

• Portable PC shoppers spend 1 month researching– take an ―always on‖ approach

• More than half of shoppers search on non-branded terms—develop a generic term strategy

• Approximately 1/3 of Portable PC shoppers shop online, but purchase in-store—incorporate this into your ROI metrics

Customer Profiles


The Tablet Shopper

Skew slightly female (53%)

25-34

56% consider more than one

brand

Most concerned with

appearance/style

Source: Google/Compete Portable PC Shopper Study, October 2010 Google/OTX Portable PC Shopper Study, October 2010Q. Which of the following [device] brands or manufacturers are you consideringpurchasing? (Select all that apply)Q: Which of the following factors are the most important to you when deciding on a <PC device> to purchase? Please select up to 5 responses.


The eReader Shopper

Skew male (64%)

45-54

70% consider more than one brand

Care about reviews more than

any other portable PC shopper.

Visit most number of sites(2.10 versus 1.55 for tablet shoppers)

33



The Laptop Shopper

Skew female (58%)

18-34 (50%)

65% considering

3 brands or more

43% want to upgrade



The Netbook Shopper

Skew male (54%)

35-44

Most undecided on brand—

80% considering more

than one

Of consumers considering

both netbooks and tablets,

consumers are leaning

towards tablet (37% vs. 25%)

Source: Google/Compete Portable PC Shopper Study, October 2010 Google/OTX Portable PC Shopper Study, October 2010Q. Which of the following [device] brands or manufacturers are you consideringpurchasing? (Select all that apply)Q. You mentioned you were considering purchasing both an netbook and tablet in the next 6 months. Of these two devices , which are you more likely to purchase? (Select one)

Appendix

Google Confidential and Proprietary 37

Appendix: Sites Included in Computer Category

Laptop Category

Acer Apple Archos Asus Dell

Fujitsu HP Lenovo Panasonic Samsung

Sony Toshiba

Netbook Category

Acer Archos Asus Dell Fujitsu

HP Lenovo Samsung Sony Toshiba

Tablet Category

Apple Archos Asus Camangi Cisco

Dell ExoPC Fujitsu HP Lenovo

Mobile Demand Open Peak Panasonic Sony Tablet Kiosk

Toshiba Villiv

eReader Category

Aluratek Amazon Bebook Barnes & Noble Bookeen

Cool Readers Ectaco Entourage Edge Hanvon Irex

Kobo Onyx Pandigital Pocketbook Samsung

Sony Spring Designs

Google Confidential and Proprietary 38

Appendix: Sites Included in Computer Referrals

Retailers

Amazon Best Buy Circuit City Comp USA Costco CDW

eBay Frys Newegg Office Depot Office Max Radio Shack

Sam‘s Club Staples Target Tiger Direct Walmart

Review

cNet BusinessWeek Buzzillions

Consumer

Reports Consumer Search Digital Trends

Engagdget Epinions Gizmodo Laptop Logic Laptop Mag

Microsoft PC

Scout

Notebook Check Notebook Review PC Mag PC World Test Freaks Gadget Mix

Netbook Reviews Table PC Review

Ebook reader

review

Price Comparison

Bizrate Calibex Deal News My Simon Nextag Price Seekers

Price Grabber Price Scan Price Spider Price Watch Retrevo Shopper

Shopping Yahoo Shopping Shopzilla Shop Compare

Social Media – same as TV Referrals

Search – same as TV Referrals

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